Vice President Dick Cheney said on Tuesday he thought Sen. Hillary Rodham Clinton could win the White House in 2008 and that a potential Democratic opponent, Sen. Barack Obama, was too inexperienced. Clinton, a New York Democrat who is running for re-election, is considered a likely contender for the White House in 2008. Obama, serving his first term as a U.S. senator from Illinois, has been touted recently as a possible candidate, something he said he would consider."I think Hillary Clinton is a formidable candidate, "Cheney said in an interview with Fox News Channel's "Hannity & Colmes" due to air on Tuesday evening."I think she could win. I hope she doesn't. I disagree with her on nearly all the issues, but nobody should underestimate her. She's a very serious candidate for president."... http://news.yahoo.com

Bush’s national security adviser said Tuesday the Iraqis are starting to make the tough decisions needed to halt rising sectarian violence, but must do more quickly. Stephen Hadley said Prime Minister Nouri al-Maliki and the fledging government are starting to take steps aimed at quelling the rising sectarian violence and moving Iraq toward prosperity and peace. “I think they’ve got to do more and they’ve got to do it faster,” Hadley said in a radio interview at the White House. “And I think if you talked to Prime Minister (Nouri) al-Maliki he would say, to you, the same thing.” With just two weeks until a crucial Election Day at home, the White House wants to ease political anxieties about security in Iraq. But at the same time it has rebuffed calls for a dramatic policy shift in the wartorn nation....http://www.msnbc.msn.com/id/15397894/

Iran has criticised planned US military exercises in the Gulf as provocative. Iran's official news agency IRNA quoted an unnamed foreign ministry official as describing the military manoeuvres as dangerous and suspicious. Reports say the US is to hold naval exercises at the end of October with Bahrain, Kuwait, France and Britain. Separately, Supreme Leader Ayatollah Ali Khamenei has called for Muslim unity to deal with what he called the "dirty aims" of the US and Israel. Speaking at prayers to mark the festival of Eid al-Fitr at the end of Ramadan, Ayatollah Khamenei said the Middle East had turned a page in its history after what he described as the victory of the militant Lebanese group Hezbollah in its recent conflict with Israel. In particular he called on Palestinian factions and groups to remain united, saying their enemies wanted to sow the seeds of division among them. ...http://news.bbc.co.uk/2/hi/middle_east/6080204.stm

California Governor Arnold Schwarzenegger has once again reinvented himself. While his fellow Republicans suffer from the president's decline in popularity, Schwarzenegger is billing himself as a savior of the environment. Voters trust him, and his name has now become just as closely associated with politics as it once was with bodybuilding and acting. Triumph produces testosterone, and that's what Arnold Schwarzenegger needs to keep him going. Even today, days after California's televised gubernatorial debate, he still relishes that gleeful moment when he asked his opponent: "What was the funniest moment of your campaign?" It was a deadly question. Phil Angelides, Schwarzenegger's Democratic opponent, grinned like a comic book character, giggled and finally produced this feeble response: "Every day is just a hoot -- I can't tell you how much fun."...http://www.spiegel.de/international/spiegel/0,1518,444049,00.html

One of Europe's foremost voices on the Middle East said Tuesday the "road map" for peace between Israel and the Palestinians is doomed, and that a major new initiative is needed to resolve the conflict.Spanish Foreign Minister Miguel Angel Moratinos told a parliamentary panel that Europe has a historic opportunity to take the lead in pushing for fresh talks, and hinted that it was too late to revive the U.S.-backed blueprint for peace known as the "road map."He said Europe must lead the effort to push both sides back to the table, working in conjunction with the United States."Everyone agrees that sooner or later there will be a peace conference," he said. "I can say that the government is discussing and sharing ideas and proposals, even with the United States, in reference to paths for the future of the region."...http://www.foxnews.com/story/0,2933,224481,00.html

The City of London needs to do more to develop business relations with China and India, or else risk losing out to rival financial hubs, a report warns. Despite London's global reputation, the study said Indian firms were building closer links with the US and Dubai. It found that Chinese businesses were also looking to the US, in addition to Hong Kong and Singapore. The report by risk analysts Sami Consulting and Oxford Analytica said London was not meeting its potential. Commissioned by the City of London itself, it pointed to the UK's close historical ties with India and significant Chinese communities. With China and India's economies continuing to enjoy stellar growth, the report points out the opportunities in India for project financing, and demand in China for savings and pensions products for the country's ageing population...http://news.bbc.co.uk/2/hi/business/6079742.stm